(CITICORP LIFE INSURANCE COMPANY LETTERHEAD)
Dear CitiVariable Annuity Contract holder:
We are pleased to present you with the Annual Report of the Separate Account of
Citicorp Life Insurance Company (Citicorp Life) for 1997. In this booklet you
will find the financial statements of the Citicorp Life separate account and
statements of changes in net assets for each of CitiVariable annuity's
investment options, all audited by KPMG Peat Marwick LLP, independent auditors.
Additionally, you will find individual annual reports for each investment
option, which show investment performance. You will note that those figures do
not reflect the separate account expense of 1.40% reflected in the CitiVariable
annuity and CitiVariable Annuity Plus performance nor the 0.50% expense related
to the CitiVariable Annuity Plus Optional GMIB Rider (available only in CA).
Please read this information carefully.
We are further pleased to be sending you, under separate cover, a letter
announcing a reduction in the separate account expense from 1.40% to 0.99%
annually - due to savings in costs of operations, - a 30% savings, starting
March 2, 1998.
We at Citicorp Life Insurance Company believe that annuity investors deserve
access to solid investment management. As you know, over the past year, the
markets have been quite active. While many investments experienced spectacular
results, others were very volatile. It is important to remember that equities
are long-term investments and it is not unusual for them to experience some
volatility over the short term. With your annuity, you get solid investment
management with 24 investment choices managed by prominent fund managers - AIM,
Citibank, N.A., Fidelity Investments(R) and MFS(R). If you would like to review
your investment goals and the appropriateness of your investment choices, please
contact your Investment Consultant from Citicorp Investment Services who is also
a Citicorp Life agent.
We value our relationship with you and are continuously working to provide you
with the kind of service you expect from a Citicorp company. If you have any
questions about the annual report, please call 1-800-497-4857, Monday through
Friday, 8 a.m. to 5 p.m., Eastern Time. Citicorp Life has the experience and
resources to help you build a lifetime of security for you and your family. We
look forward to serving your retirement needs, now and in the future.
Sincerely,
/s/Alan Liebowitz
Alan Liebowitz
President
CitiVariable Annuity and CitiVariable Annuity Plus are issued by Citicorp Life
Insurance Company, a subsidiary of Citibank Delaware, located in Dover, DE.
These annuities are not available in all states. Consult your tax advisor for
answers to your tax questions. The designation (sm) indicates a service mark of
Citicorp. Please review the annuity contract for complete details. Policy Number
Series: 63-1103(05-94). Rider Number Series: 63-1500(04-97). Calls may be
monitored. All named entities above are affiliates of Citicorp Investment
Services, Citibank and Citicorp.
Fidelity Investments is a registered Trademark of FMR Corp.
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Financial Statements and Schedule
December 31, 1997
(With Independent Auditors' Report Thereon)
<PAGE>
Independent Auditors' Report
The Board of Directors
Citicorp Life Insurance Company and Policyholders
of Citicorp Life Insurance Company
Variable Annuity Separate Account:
We have audited the accompanying statement of net assets of the AIM V.I.
Capital Appreciation Fund, AIM V.I. Government Series Fund, AIM V.I. Growth
Fund, AIM V.I. Growth and Income Fund, AIM V.I. International Equity Fund,
AIM V.I. Value Fund, CitiSelect VIP Folio 200, CitiSelect VIP Folio 300,
CitiSelect VIP Folio 400, CitiSelect VIP Folio 500, Fidelity VIP Equity
Income Portfolio, Fidelity VIP Growth Portfolio, Fidelity VIP High Income
Portfolio, Fidelity VIP Overseas Portfolio, Fidelity VIP II Contrafund
Portfolio, Fidelity VIP II Index 500 Portfolio, Landmark Small Cap Equity
VIP Fund, Landmark VIP Balanced Fund, Landmark VIP Equity Fund, Landmark
VIP International Equity Fund, Landmark VIP U.S. Government Fund, MFS Bond
Series, MFS Emerging Growth Series, MFS Money Market Series, MFS Research
Series, MFS Total Return Series, and MFS World Governments Series
Portfolios of Citicorp Life Insurance Company Variable Annuity Separate
Account as of December 31, 1997, and the related statement of operations
for the year then ended and related statements of changes in net assets for
each of the years in the two-year period ended December 31, 1997. These
financial statements are the responsibility of Citicorp Life Insurance
Company Variable Annuity Separate Account's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned at
December 31, 1997, by correspondence with the Landmark Variable Insurance
Products Fund, A.I.M. Variable Insurance Funds, Inc., CitiSelect Variable
Insurance Products Fund, Fidelity Variable Insurance Products Fund, and MFS
Variable Insurance Trust. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the AIM V.I. Capital
Appreciation Fund, AIM V.I. Government Series Fund, AIM V.I. Growth Fund,
AIM V.I. Growth and Income Fund, AIM V.I. International Equity Fund, AIM
V.I. Value Fund, CitiSelect VIP Folio 200, CitiSelect VIP Folio 300,
CitiSelect VIP Folio 400, CitiSelect VIP Folio 500, Fidelity VIP Equity
Income Portfolio, Fidelity VIP Growth Portfolio, Fidelity VIP High Income
Portfolio, Fidelity VIP Overseas Portfolio, Fidelity VIP II Contrafund
1
<PAGE>
Portfolio, Fidelity VIP II Index 500 Portfolio, Landmark Small Cap Equity
VIP Fund, Landmark VIP Balanced Fund, Landmark VIP Equity Fund, Landmark
VIP International Equity Fund, Landmark VIP U.S. Government Fund, MFS Bond
Series, MFS Emerging Growth Series, MFS Money Market Series, MFS Research
Series, MFS Total Return Series, and MFS World Governments Series
Portfolios of Citicorp Life Insurance Company Variable Annuity Separate
Account as of December 31, 1997, and the results of their operations for
the year then ended and changes in their net assets for each of the years
in the two-year period ended December 31, 1997, in conformity with
generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
January 21, 1998
2
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth International V.I.
Appreciation Series Growth and Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $ 2,159,256 608,044 381,596 979,807 2,469,830 2,499,501
Payable to Citicorp Life
Insurance Company 1,261 370 224 580 1,494 1,496
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 2,157,995 607,674 381,372 979,227 2,468,336 2,498,005
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 2,157,995 607,674 381,372 979,227 2,468,336 2,498,005
Citicorp Life Insurance
Company equity -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $ 2,157,995 607,674 381,372 979,227 2,468,336 2,498,005
- ------------------------------------------------------------------------------------------------------------------------------------
Total units held by contractholders 1,293,126 573,525 315,240 827,506 2,357,251 2,102,285
Accumulated unit value $ 1.67 1.06 1.21 1.18 1.05 1.19
Cost of investments $ 2,087,287 582,309 354,976 928,320 2,530,929 2,406,762
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares 99,276 56,986 19,243 51,924 144,182 119,995
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
3
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $4,795,116 3,584,345 3,089,900 8,019,224 2,756,355 1,306,923
Payable to Citicorp Life
Insurance Company 1,474 2,157 1,724 654 1,618 744
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $4,793,642 3,582,188 3,088,176 8,018,570 2,754,737 1,306,179
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 2,430,519 3,582,188 3,088,176 1,144,192 2,754,737 1,306,179
Citicorp Life Insurance
Company equity 2,363,123 -- -- 6,874,378 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $4,793,642 3,582,188 3,088,176 8,018,570 2,754,737 1,306,179
- ------------------------------------------------------------------------------------------------------------------------------------
Total units held by contractholders 2,283,189 3,338,546 2,863,311 1,046,036 2,265,460 725,424
Accumulated unit value $ 1.06 1.07 1.08 1.09 1.22 1.80
Cost of investments $4,803,342 3,579,678 3,059,993 7,712,322 2,476,697 1,223,875
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares 467,816 345,313 300,574 765,193 113,524 35,227
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
4
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $932,623 1,163,031 1,917,367 2,738,478 2,191,034 --
Payable to Citicorp Life
Insurance Company 572 704 1,114 1,603 98 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $932,051 1,162,327 1,916,253 2,736,875 2,190,936 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 932,051 1,162,327 1,916,253 2,736,875 166,226 --
Citicorp Life Insurance
Company equity -- -- -- -- 2,024,710 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $932,051 1,162,327 1,916,253 2,736,875 2,190,936 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total units held by contractholders 819,371 1,070,184 1,585,128 2,215,225 150,143 --
Accumulated unit value $ 1.14 1.09 1.21 1.24 1.11 --
Cost of investments $ 857,638 1,150,630 1,710,443 2,486,081 1,961,540 --
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares 68,676 60,575 96,157 23,940 195,454 --
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
5
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net assets:
Investments at market value $ -- -- -- 928,930 2,709,759 3,681,200
Payable to Citicorp Life
Insurance Company -- -- -- 556 1,595 1,352
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ -- -- -- 928,374 2,708,164 3,679,848
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders -- -- -- 928,374 2,708,164 3,679,848
Citicorp Life Insurance
Company equity -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets represented $ -- -- -- 928,374 2,708,164 3,679,848
- ------------------------------------------------------------------------------------------------------------------------------------
Total units held by contractholders -- -- -- 861,145 2,322,481 3,362,150
Accumulated unit value $ -- -- -- 1.08 1.17 1.09
Cost of investments $ -- -- -- 879,610 2,442,188 3,681,200
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares -- -- -- 83,838 167,891 3,681,200
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
6
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Net Assets
December 31, 1997
<TABLE>
<CAPTION>
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets:
Investments at market value $2,961,502 1,854,575 332,922
Payable to Citicorp Life
Insurance Company 1,768 1,125 206
- ------------------------------------------------------------------------------------------
Total net assets $2,959,734 1,853,450 332,716
- ------------------------------------------------------------------------------------------
Total net assets represented by:
Variable annuity cash value
invested in separate account
by contractholders 2,959,734 1,853,450 332,716
Citicorp Life Insurance
Company equity - - -
- ------------------------------------------------------------------------------------------
Total net assets represented $2,959,734 1,853,450 332,716
- ------------------------------------------------------------------------------------------
Total units held by contractholders 2,569,829 1,592,342 303,642
Accumulated unit value $ 1.15 1.16 1.10
Cost of investments $2,771,107 1,681,593 331,494
- ------------------------------------------------------------------------------------------
Number of shares 187,556 111,520 32,607
- ------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
7
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Operations
December 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth International V.I.
Appreciation Series Growth and Income Equity Value
Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ 1,970 277 1,534 491 10,964 21,555
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 14,297 3,387 2,554 5,175 15,047 13,972
Daily administrative charges 1,697 397 300 610 1,768 1,638
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 15,994 3,784 2,854 5,785 16,815 15,610
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (14,024) (3,507) (1,320) (5,294) (5,851) 5,945
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution 25,326 -- 11,577 736 38,581 66,177
Realized gain (loss) on sale
of investments 13,462 528 3,283 915 1,552 1,188
Change in unrealized gain
(loss) on investments 67,869 25,735 26,620 51,487 (61,099) 92,739
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 106,657 26,263 41,480 53,138 (20,966) 160,104
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $ 92,633 22,756 40,160 47,844 (26,817) 166,049
- -----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
8
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Operations
December 31, 1997
<TABLE>
<CAPTION>
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $252,499 155,326 160,785 416,730 -- 1,002
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 11,384 23,931 22,551 7,190 15,950 7,786
Daily administrative charges 1,332 2,816 2,650 845 1,864 917
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 12,716 26,747 25,201 8,035 17,814 8,703
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 239,783 128,579 135,584 408,695 (17,814) (7,701)
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- -- -- -- 4,494
Realized gain (loss) on sale
of investments 406,331 416,225 591,490 289,938 11,275 27,616
Change in unrealized gain
(loss) on investments (8,226) 4,667 29,907 306,902 279,658 77,797
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 398,105 420,892 621,397 596,840 290,933 109,907
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $637,888 549,471 756,981 1,005,535 273,119 102,206
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
9
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $ - - - - - 32,783
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 5,997 8,057 11,580 14,894 1,091 246
Daily administrative charges 701 947 1,359 1,743 128 29
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 6,698 9,004 12,939 16,637 1,219 275
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (6,698) (9,004) (12,939) (16,637) (1,219) 32,508
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution - - - - - 216,898
Realized gain (loss) on sale
of investments 10,454 903 4,118 2,533 70,406 (95,900)
Change in unrealized gain
(loss) on investments 74,985 12,401 206,924 252,397 229,494 (126,072)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 85,439 13,304 211,042 254,930 299,900 (5,074)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $78,741 4,300 198,103 238,293 298,681 27,434
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
10
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income - dividends $16,729 32,151 33,661 - - 62,533
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 41 399 259 5,364 16,871 17,593
Daily administrative charges 5 48 31 629 1,997 2,067
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 46 447 290 5,993 18,868 19,660
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 16,683 31,704 33,371 (5,993) (18,868) 42,873
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution 497,237 34,624 - - - 8,975
Realized gain (loss) on sale
of investments (206,783) 11,138 (53,223) 4,085 3,481 -
Change in unrealized gain
(loss) on investments (252,777) (194,481) 16,093 49,320 267,571 -
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 37,677 (148,719) (37,130) 53,405 271,052 8,975
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $54,360 (117,015) (3,759) 47,412 252,184 51,848
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
11
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Operations
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income-- dividends $ -- -- 2,521
- -----------------------------------------------------------------------------------------------------
Expenses:
Mortality and expense risk fees 17,431 11,542 2,611
Daily administrative charges 2,049 1,351 308
- -----------------------------------------------------------------------------------------------------
Total expenses 19,480 12,893 2,919
- -----------------------------------------------------------------------------------------------------
Net investment income (loss) (19,480) (12,893) (398)
- -----------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments:
Realized gain distribution -- -- --
Realized gain (loss) on sale
of investments 1,784 4,051 449
Change in unrealized gain
(loss) on investments 190,395 172,982 (1,796)
- -----------------------------------------------------------------------------------------------------
Net gain (loss) on investments 192,179 177,033 (1,347)
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations $172,699 164,140 (1,745)
- -----------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
12
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth International V.I.
Appreciation Series Growth and Income Equity Value
Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (14,024) (3,507) (1,320) (5,294) (5,851) 5,945
Realized gain distribution 25,326 -- 11,577 736 38,581 66,177
Realized gain (loss) on sale
of investments 13,462 528 3,283 915 1,552 1,188
Change in unrealized gain
(loss) on investments 67,869 25,735 26,620 51,487 (61,099) 92,739
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 92,633 22,756 40,160 47,844 (26,817) 166,049
- -----------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 1,861,129 427,259 322,951 925,509 2,116,404 2,148,867
Transfers between funds 133,734 168,348 40,708 8,561 373,137 164,471
Transfers to (from) Citicorp Life
Insurance Company (21,269) (10,689) (22,447) 3,261 17,147 21,363
Annual administrative charges (19) -- -- -- -- --
Death benefits -- -- -- -- (481) --
Contract withdrawals (23,936) -- -- (5,948) (11,054) (2,745)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital
transactions 1,949,639 584,918 341,212 931,383 2,495,153 2,331,956
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 2,042,272 607,674 381,372 979,227 2,468,336 2,498,005
Net assets at beginning of period 115,723 -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $2,157,995 607,674 381,372 979,227 2,468,336 2,498,005
- -----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
13
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ 239,783 128,579 135,584 408,695 (17,814) (7,701)
Realized gain distribution -- -- -- -- -- 4,494
Realized gain (loss) on sale
of investments 406,331 416,225 591,490 289,938 11,275 27,616
Change in unrealized gain
(loss) on investments (8,226) 4,667 29,907 306,902 279,658 77,797
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 637,888 549,471 756,981 1,005,535 273,119 102,206
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 2,401,340 3,312,960 2,954,710 1,086,664 2,116,829 1,085,062
Transfers between funds 23,801 128,048 16,016 11,810 235,669 43,852
Transfers to (from) Citicorp Life
Insurance Company 1,768,348 (382,008) (598,743) 5,923,423 144,921 (55,737)
Annual administrative charges -- -- -- -- (14) (35)
Death benefits -- (496) -- -- (517) --
Contract withdrawals (37,735) (25,787) (40,788) (8,862) (15,270) (14,907)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital
transactions 4,155,754 3,032,717 2,331,195 7,013,035 2,481,618 1,058,235
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 4,793,642 3,582,188 3,088,176 8,018,570 2,754,737 1,160,441
Net assets at beginning of period -- -- -- -- -- 145,738
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $4,793,642 3,582,188 3,088,176 8,018,570 2,754,737 1,306,179
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
14
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $(6,698) (9,004) (12,939) (16,637) (1,219) 32,508
Realized gain distribution -- -- -- -- -- 216,898
Realized gain (loss) on sale
of investments 10,454 903 4,118 2,533 70,406 (95,900)
Change in unrealized gain
(loss) on investments 74,985 12,401 206,924 252,397 229,494 (126,072)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 78,741 4,300 198,103 238,293 298,681 27,434
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 820,108 1,062,266 1,641,264 2,391,045 154,300 11,588
Transfers between funds 40,099 95,513 107,565 126,147 1,999 (67,856)
Transfers to (from) Citicorp Life
Insurance Company 24,227 1,903 (1,638) (7,068) 1,735,956 (1,233,209)
Annual administrative charges -- -- -- -- -- --
Death benefits -- -- -- (518) -- --
Contract withdrawals (31,124) (1,655) (29,041) (11,024) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net
assets resulting from
capital transactions 853,310 1,158,027 1,718,150 2,498,582 1,892,255 (1,289,477)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in
net assets 932,051 1,162,327 1,916,253 2,736,875 2,190,936 (1,262,043)
Net assets at beginning of period -- -- -- -- -- 1,262,043
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $932,051 1,162,327 1,916,253 2,736,875 2,190,936 --
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
15
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ 16,683 31,704 33,371 (5,993) (18,868) 42,873)
Realized gain distribution 497,237 34,624 -- -- -- 8,975
Realized gain (loss) on sale
of investments (206,783) 11,138 (53,223) 4,085 3,481 --
Change in unrealized gain
(loss) on investments (252,777) (194,481) 16,093 49,320 267,571 --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 54,360 (117,015) (3,759) 47,412 252,184 51,848
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 11,588 100 -- 736,413 2,261,039 6,327,835
Transfers between funds (13,028) (107,251) (69,541) 173,284 184,924 (2,264,257)
Transfers to (from) Citicorp Life
Insurance Company (1,364,903) (4,259,003) (1,081,533) (22,790) 17,964 5,563
Annual administrative charges -- -- -- -- -- --
Death benefits -- -- -- -- -- --
Contract withdrawals -- -- -- (5,945) (7,947) (491,241)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital
transactions (1,366,343) (4,366,154) (1,151,074) 880,962 2,455,980 3,577,900
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in
net assets (1,311,983) (4,483,169) (1,154,833) 928,374 2,708,164 3,629,748
Net assets at beginning of period 1,311,983 4,483,169 1,154,833 -- -- 50,100
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ -- -- -- 928,374 2,708,164 3,679,848
- ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. (Continued)
</TABLE>
16
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1997
- --------------------------------------------------------------------------------
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (19,480) (12,893) (398)
Realized gain distribution -- -- --
Realized gain (loss) on sale
of investments 1,784 4,051 449
Change in unrealized gain
(loss) on investments 190,395 172,982 (1,796)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations 172,699 164,140 (1,745)
- --------------------------------------------------------------------------------
Capital transactions:
Contract deposits 2,403,116 1,636,629 278,054
Transfers between funds 398,099 67,561 (21,407)
Transfers to (from) Citicorp Life
Insurance Company 15,817 13,308 3,801
Annual administrative charges -- -- --
Death benefits -- (515) --
Contract withdrawals (29,997) (27,673) --
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from capital
transactions 2,787,035 1,689,310 260,448
- --------------------------------------------------------------------------------
Total increase (decrease) in
net assets 2,959,734 1,853,450 258,703
Net assets at beginning of period -- -- 74,013
- --------------------------------------------------------------------------------
Net assets at end of period $2,959,734 1,853,450 332,716
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
17
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
A.I.M. V.I. Fidelity Landmark Landmark Landmark Landmark
Capital VIP VIP VIP VIP VIP U.S.
Appreciation Growth Balanced Equity International Government
Fund Portfolio Fund Fund Equity Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $ (440) (771) 43,883 24,470 54,943 69,120
Realized gain distribution -- 413 17,355 20,976 75,006 --
Realized gain on sale of
investments 5 124 44 -- 22 12
Change in unrealized gain
(loss) on investments 4,100 4,380 38,580 117,485 122,500 (50,069)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting
from operations 3,665 4,146 99,862 162,931 252,471 19,063
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions:
Contract deposits 110,664 134,244 47,895 1,531 107,779 66,291
Transfers from Citicorp Life
Insurance Company 1,394 1,394 -- -- -- --
Annual administrative charges -- (16) (14) -- -- --
Contract withdrawals -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets resulting
from capital transactions 112,058 135,622 47,881 1,531 107,779 66,291
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 115,723 139,768 147,743 164,462 360,250 85,354
Net assets at beginning of period -- 5,970 1,114,300 1,147,521 4,122,919 1,069,479
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $115,723 145,738 1,262,043 1,311,983 4,483,169 1,154,833
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Statement of Changes in Net Assets
For the year ended December 31, 1996
- --------------------------------------------------------------------------------
MFS
Money MFS World
Market Governments
Series Series
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
resulting from operations:
Net investment income (loss) $255 (526)
Realized gain distribution -- --
Realized gain on sale of
investments -- 15
Change in unrealized gain
(loss) on investments -- 3,224
- --------------------------------------------------------------------------------
Increase in net assets resulting
from operations 255 2,713
- --------------------------------------------------------------------------------
Capital transactions:
Contract deposits 49,845 71,300
Transfers from Citicorp Life
Insurance Company -- --
Annual administrative charges -- --
Contract withdrawals -- --
- --------------------------------------------------------------------------------
Increase in net assets resulting
from capital transactions 49,845 71,300
- --------------------------------------------------------------------------------
Total increase in net assets 50,100 74,013
Net assets at beginning of period -- --
- --------------------------------------------------------------------------------
Net assets at end of period $50,100 74,013
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
19
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
December 31, 1997
================================================================================
(1) History
Citicorp Life Insurance Company Variable Annuity Separate Account (the
Account) is a separate investment account maintained under the
provisions of Arizona Insurance Law by Citicorp Life Insurance Company
(the Company). The Account operates as a unit investment trust
registered under the Investment Company Act of 1940, as amended, and
supports the operations of the Company's individual flexible premium
deferred variable annuity contracts (the contracts). The Account invests
in portfolios of the following funds:
o Variable Annuity Portfolios:
o CitiSelect VIP Folio 200*,
o CitiSelect VIP Folio 300*,
o CitiSelect VIP Folio 400*,
o CitiSelect VIP Folio 500, and
o Landmark Small Cap Equity VIP Fund.
o Landmark Variable Insurance Products (VIP) Funds:
o Landmark VIP Balanced Fund,
o Landmark VIP Equity Fund,
o Landmark VIP International Equity Fund, and
o Landmark VIP U.S. Government Fund.
o AIM Variable Insurance Funds, Inc.:
o AIM V.I. Capital Appreciation Fund,
o AIM V.I. Government Series Fund*,
o AIM V.I. Growth Fund*,
o AIM V.I. Growth and Income Fund*,
o AIM V.I. International Equity Fund*, and
o the AIM V.I. Value Fund*.
o Fidelity Variable Insurance Products Funds:
o Fidelity VIP Equity Income Portfolio*,
o Fidelity VIP Growth Portfolio,
o Fidelity VIP High Income Portfolio*,
o Fidelity VIP Overseas Portfolio*,
o Fidelity VIP II Contrafund Portfolio*,
o and Fidelity VIP II Index 500 Portfolio*.
o MFS Variable Insurance Trust:
o MFS Bond Series*,
o MFS Emerging Growth Series*,
o MFS Money Market Series,
o MFS Research Series*,
o MFS Total Return Series*, and
o MFS World Governments Series.
* Available to the Account beginning February 3, 1997.
The CitiSelect Variable Insurance Products Funds had no assets or
operations until February 10, 1997, when the Company transferred
$40,000,000 from its general fund to provide initial capital. Also at
this time, the Company transferred $3,000,000 from its general fund to
the Landmark Small Cap Equity VIP Fund for the same purpose.
As of April 30, 1997, several funds were no longer available to the
Account, including Landmark VIP Balanced Fund, Landmark VIP Equity Fund,
(Continued)
20
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
================================================================================
Landmark VIP International Equity Fund, and Landmark VIP U.S. Government
Fund. In conjunction with the removal of these Landmark Variable
Insurance Products Funds from the Account, the Company transferred
$7,000,000 in initial capital back to its general fund.
21
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
The assets of the Account are the property of the Company. The portion
of the Account's assets applicable to the contracts is not chargeable
with liabilities arising out of any other business conducted by the
Company.
In addition to the Account, a contract owner may also allocate funds to
the General Account, which is part of the Company's general account.
Amounts allocated to the General Account are credited with a guaranteed
rate of interest for one year. Because of exemptive and exclusionary
provisions, interests in the General Account have not been registered
under the Securities Act of 1933, and the General Account has not been
registered as an investment company under the Investment Company Act of
1940.
(2) Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed
by the Account in preparation of the financial statements in conformity
with generally accepted accounting principles.
Investment Valuation
The investment in the Fund is stated at market value, which is the net
asset value of each of the respective series as determined by the Fund
at the close of business on the last working day of the period.
Accounting for Investments
Investment transactions are accounted for on the trade date. Dividend
income is recorded on the ex-dividend date. The cost of investments sold
is generally determined on the specific identification method.
Federal Income Taxes
The Company is taxed under federal law as a life insurance company. The
Account is part of the Company's total operations, and is not taxed
separately. Under existing law, no taxes are payable on investment
income and realized capital gains of the Account.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease
in net assets from operations during the period. Actual results could
differ from those estimates.
(3) Contract Charges
Daily charges for mortality and expense risks assumed by the Company are
assessed through the daily unit value calculation, and are equivalent on
an annual basis to 1.25% of the net assets of the contracts.
An annual contract fee of $30 is assessed against each contract on its
anniversary date by surrendering units. Daily charges for administrative
(Continued)
22
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
expenses are assessed through the daily unit value calculation, and are
equivalent on an annual basis to 0.15% of the net assets of the
contracts.
The contracts provide that in the event that a contract owner withdraws
all or a portion of the contract value within five contract years, a
deferred sales charge will be assessed. The deferred sales charge is
based on a table of charges, of which the maximum charge is currently 7%
of the purchase payments withdrawn. During each contract year, up to 10%
of purchase payments less any prior withdrawal of purchase payments may
be withdrawn without a deferred sales charge.
Premium taxes may be applicable, depending on the laws of various
jurisdictions. Various states and other governmental entities levy a
premium tax on annuity contracts issued by insurance companies.
(4) Purchases of Investments
For the year ended December 31, 1997, investment activity in each of the
respective Funds was as follows:
- --------------------------------------------------------------------------------
Cost of Proceeds
Shares of purchases from sales
- --------------------------------------------------------------------------------
Variable Annuity Portfolios:
CitiSelect VIP Folio 200 $ 12,795,433 8,398,423
CitiSelect VIP Folio 300 13,669,901 10,506,449
CitiSelect VIP Folio 400 13,251,140 10,782,637
CitiSelect VIP Folio 500 11,553,686 4,131,303
Landmark Small Cap Equity VIP Fund 3,156,495 1,265,361
Landmark Variable Insurance Products Funds:
Landmark VIP Balanced Fund 261,270 1,301,370
Landmark VIP Equity Fund 525,555 1,377,978
Landmark VIP International Equity Fund 66,875 4,366,759
Landmark VIP U.S. Government Fund 33,661 1,151,402
AIM Variable Insurance Funds, Inc. :
AIM V.I. Capital Appreciation Fund 2,068,813 106,674
AIM V.I. Government Series Fund 609,841 28,060
AIM V.I. Growth Fund 399,397 47,704
AIM V.I. Growth and Income Fund 938,538 11,133
AIM V.I. International Equity Fund 2,565,454 36,077
AIM V.I. Value Fund 2,414,875 9,302
Fidelity Variable Insurance Products Funds:
Fidelity VIP Equity Income Portfolio 2,566,211 100,788
Fidelity VIP Growth Portfolio 1,219,682 163,988
Fidelity VIP High Income Portfolio 951,879 104,694
Fidelity VIP Overseas Portfolio 1,158,614 8,887
Fidelity VIP II Contrafund Portfolio 1,734,957 28,630
Fidelity VIP II Index 500 Portfolio 2,505,310 21,761
MFS Variable Insurance Trust:
MFS Bond Series 939,738 64,213
MFS Emerging Growth Series 2,465,722 27,014
MFS Money Market Series 5,997,724 2,366,650
MFS Research Series 2,815,957 46,634
(Continued)
23
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
MFS Total Return Series 1,730,571 53,028
MFS World Governments Series 441,338 181,122
- --------------------------------------------------------------------------------
(Continued)
24
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(5) Net Increase in Accumulation Units
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
- ------------------------------------------------------------------------------------------------------------------------------------
1997
---------------------------------------------------------------------------------------------
AIM V.I. AIM V.I. AIM AIM V.I. AIM V.I. AIM
Capital Government V.I. Growth and International V.I.
Appreciation Series Growth Income Equity Value
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 1,162,380 419,758 302,312 822,814 1,995,901 1,946,925
Units withdrawn and
contract charges (14,524) -- -- (5,199) (11,071) (2,388)
Units transferred
between funds 67,659 153,767 12,928 9,891 372,421 157,748
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 1,215,515 573,525 315,240 827,506 2,357,251 2,102,285
Units at beginning
of period 77,611 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 1,293,126 573,525 315,240 827,506 2,357,251 2,102,285
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1997
----------------------------------------------------------------------------------------------
CitiSelect CitiSelect CitiSelect CitiSelect Fidelity Fidelity
VIP VIP VIP VIP VIP Equity VIP
Folio Folio Folio Folio Income Growth
200 300 400 500 Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 2,296,533 3,216,778 2,906,175 1,039,064 1,925,885 644,857
Units withdrawn and
contract charges (35,890) (24,862) (37,494) (8,003) (13,505) (8,500)
Units transferred
between funds 22,546 146,630 (5,370) 14,975 353,080 (9,483)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase 2,283,189 3,338,546 2,863,311 1,046,036 2,265,460 626,874
Units at beginning
of period -- -- -- -- -- 98,550
- ---------------------------------------------------------------------------------------------------------------------------------
Units at end of period 2,283,189 3,338,546 2,863,311 1,046,036 2,265,460 725,424
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
26
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1997
---------------------------------------------------------------------------------------------
Fidelity Fidelity Fidelity Fidelity Landmark Landmark
VIP High VIP VIP II VIP II Small Cap VIP
Income Overseas Contrafund Index 500 Equity VIP Balanced
Portfolio Portfolio Portfolio Portfolio Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 789,414 984,950 1,515,643 2,127,252 148,286 9,479
Units withdrawn and
contract charges (29,938) (1,495) (24,919) (9,879) -- --
Units transferred
between funds 59,895 86,729 94,404 97,852 1,857 (55,954)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 819,371 1,070,184 1,585,128 2,215,225 150,143 (46,475)
Units at beginning
of period -- -- -- -- -- 46,475
- ------------------------------------------------------------------------------------------------------------------------------------
Units at end of period 819,371 1,070,184 1,585,128 2,215,225 150,143 --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
27
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
- -----------------------------------------------------------------------------------------------------------------------------
1997
--------------------------------------------------------------------------------------
Landmark Landmark Landmark MFS MFS
VIP VIP VIP U.S. MFS Emerging Money
Equity International Government Bond Growth Market
Fund Equity Fund Fund Series Series Series
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 8,546 94 -- 724,554 2,147,071 5,856,833
Units withdrawn and
contract charges -- -- -- (5,747) (7,257) (453,780)
Units transferred
between funds (9,711) (101,857) (65,380) 142,338 182,667 (2,088,279)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,165) (101,763) (65,380) 861,145 2,322,481 3,314,774
Units at beginning
of period 1,165 101,763 65,380 -- -- 47,376
- -----------------------------------------------------------------------------------------------------------------------------
Units at end of period -- -- -- 861,145 2,322,481 3,362,150
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
28
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
- --------------------------------------------------------------------------------
1997
-----------------------------------------------
MFS MFS
MFS Total World
Research Return Governments
Series Series Series
- --------------------------------------------------------------------------------
Units purchased 2,226,580 1,541,024 253,499
Units withdrawn and
contract charges (25,571) (24,995) --
Units transferred
between funds 368,820 76,313 (15,705)
- --------------------------------------------------------------------------------
Net increase (decrease) 2,569,829 1,592,342 237,794
Units at beginning
of period -- -- 65,848
- --------------------------------------------------------------------------------
Units at end of period 32,569,829 1,592,342 303,642
- --------------------------------------------------------------------------------
(Continued)
29
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
1996
-------------------------------------------------------------------------------------------
A.I.M. V.I. Fidelity Landmark Landmark Landmark Landmark
Capital VIP VIP VIP VIP VIP U.S.
Appreciation Growth Balanced Equity International Government
Fund Portfolio Fund Fund Equity Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Units purchased 76,664 93,044 41,393 1,165 101,764 65,380
Units withdrawn and
contract charges -- (11) (12) -- -- --
Units transferred
between funds 947 952 -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase 77,611 93,985 41,381 1,165 101,764 65,380
Units at beginning
of period -- 4,565 5,094 -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Units at end of period 77,611 98,550 46,475 1,165 101,764 65,380
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Continued)
30
<PAGE>
CITICORP LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the years ended December 31, 1997 and 1996, transactions in
accumulation units of contractholders of the Account were as follows:
1996
----------------------------------
MFS MFS World
Money Governments
Market Series Series
- ---------------------------------------------------------------------------
Units purchased 47,376 65,848
Units withdrawn and
contract charges -- --
Units transferred
between funds -- --
- ---------------------------------------------------------------------------
Net increase 47,376 65,848
Units at beginning
of period -- --
- ---------------------------------------------------------------------------
Units at end of period 47,376 65,848
- ---------------------------------------------------------------------------
31
<PAGE>
EXHIBIT I
The following documents have been previously filed via EDGAR and are herein
incorporated by reference. Financial information may be obtained from the
following
<TABLE>
<CAPTION>
DATE FORM 40 ACT
FUND NAME CIK # SUBMITTED TYPE FILE # ACCESSION #
--------- ----- --------- ---- ------ -----------
<S> <C> <C> <C> <C> <C>
Variable Annuity Portfolios
CitiSelect VIP Folio 200 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 300 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 400 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiSelect VIP Folio 500 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
CitiFunds Small Cap Growth 0001026107 3/02/98 N-30B-2 811-07893 0000950156-98-000195
VIP Portfolio
Fidelity Variable Insurance Products Fund
Growth Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000024
High Income Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000025
Equity Income Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000023
Overseas Portfolio 0001012679 2/23/98 N-30D 811-03329 0000356494-98-000028
Fidelity Variable Insurance Product Fund II
Contrafund Portfolio 0000831016 2/23/98 N-30D 811-05511 0000356494-98-000031
Index 500 Portfolio 0000831016 2/23/98 N-30D 811-05511 0000356494-98-000034
AIM Variable Insurance Funds, Inc.
AIM V.I. Capital Appreciation Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Government Securities Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Growth Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. International Equity Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Value Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
AIM V.I. Growth and Income Fund 0000896435 3/03/98 N-30D 811-07452 0000899243-98-000311
MFS Variable Insurance Trust
MFS World Governments Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000244
MFS Money Market Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000246
MFS Bond Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000249
MFS Total Return Series 0000918571 3/06/98 N-30D 811-08326 0000950156-98-000243
MFS Research Series 0000918571 3/05/98 N-30D 811-08326 0000950156-98-000210
MFS Emerging Growth Series 0000918571 3/05/98 N-30D 811-08326 0000950156-98-000209
</TABLE>
